Boeing Gets Green Light: China Lifts Ban on Aircraft Deliveries Post US Tariff Deal
Boeing aircraft deliveries to China no longer face restrictions.
After the first agreement in the ongoing US-China trade dispute, China has reportedly given the go-ahead for its domestic airlines to purchase Boeing aircraft once more. Confidential sources have shared this information with Bloomberg.
Chinese officials are now informing local airlines and government agencies that they can resume the delivery of American-made aircraft, as per a report. One of these sources added that the officials have given the airlines the freedom to manage the deliveries according to their own schedule and terms.
Following a 90-day truce in the trade war and significant reductions in tariffs between the two nations, this move is a significant milestone. Boeing, however, refused to comment on the matter, while China's civil aviation authority remained unreachable for comment.
For Boeing, China is a crucial and growing aviation market. It constitutes about 10 percent of the company's commercial order backlog. China had previously granted tariff exemptions for some aircraft parts.
Resuming deliveries will save Boeing precious time and costs in finding alternative buyers and ensures substantial payments. Projections suggest that China will account for 20 percent of global aircraft demand over the next two decades.
In light of the trade tensions and self-inflicted issues, the US aircraft manufacturer has not secured any major orders in China in recent years. In 2019, China became the first country to ground the 737 Max after two fatal crashes. Subsequent trade disputes with the Biden and Trump administrations also contributed to Chinese orders focusing on European competitor, Airbus.
In Depth:
The lifting of the ban on Boeing aircraft deliveries in China comes after a 90-day trade truce between the US and China. This decision is particularly significant for Boeing, as China is a key market for the company. Boeing plans to deliver around 50 jets to China this year, including 10 737 Max aircraft that have been ready for delivery[2].
Although the US-China trade war still looms large, this move marks a positive step in their relationship. It offers critical relief to Boeing, which has been grappling with financial difficulties. The approval allows major airlines like China Southern and Air China to proceed with planned shipments[2].
Sources:- ntv.de- jki/rts
- Boeing
- China
- USA
- Tariffs
- Trade disputes
- Boeing's financial difficulties may see relief with the resumption of aircraft deliveries to China, a significant market for the company, following China's approval post the US tariff deal.
- In the aerospace industry, China's decision allows Chinese airlines like China Southern and Air China to follow through with their planned shipments of Boeing aircraft, which might help Boeing manage its supply and reduce costs.
